Stefan Gleason Blog | Actions By Biden, Yellen, Powell Make Gold & Silver Ownership Imperative | Talkmarkets - Page 2
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Gleason is president of Money Metals Exchange, a national precious metals investment company and news service with over 450,000 readers, 35,000 paid customers, and $120 million in annual sales. He launched the company while president of a national newsletter publishing ... more

Actions By Biden, Yellen, Powell Make Gold & Silver Ownership Imperative

Date: Friday, April 9, 2021 3:43 PM EDT

 

Since then, both Democrats and Republicans have abandoned fiscal discipline. They have increasingly leaned on the Federal Reserve to facilitate their big government spending programs. 

 

It’s no coincidence that President Biden picked a former Fed chair – and longtime colleague of the current Fed chair – to be his Treasury Secretary. The Treasury and the Fed are effectively operating in tandem, even though the central bank is supposed to be an independent organization.

 

This week Biden insisted that he hasn’t even talked with Fed chairman Jerome Powell. But even though he has been less engaged on monetary policy than President Donald Trump was, that doesn’t mean his administration is taking a hands-off approach – not with Janet Yellen in charge of the government’s checkbook.

 

News Reporter: Have you spoken to the Federal Reserve Chairman, Jay Powell, yet?

 

President Joe Biden: I have not.

 

News Reporter: Can you say why? Do you plan to speak to him soon, Sir?

 

President Joe Biden: I am not ... Look, I think The Federal Reserve is an independent operation, and starting off my presidency, I want to be real clear that I'm not going to do the kinds of things that have been done in the last administration: either talking to the Attorney General about who he's going to prosecute or not prosecute, and under what circumstances; or the Fed telling them what they should and shouldn't do. Even though that wouldn't be the basis upon which I'd be talking to them. So I've been very fastidious about not talking to them, but I do talk to the Secretary of Treasury.

 

Thank you all very much.

 

President Biden can afford to be aloof when it comes to monetary policy. He knows the Fed will accommodate whatever deficit spending he and Congress manage to push through.

 

The current political and economic forces in play harken back to the late 1970s under Presidents Gerald Ford and Jimmy Carter. It was a period when economic stagnation coupled with inflation to produce stagflation.

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